Finance and Marketing

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Transcript of Finance and Marketing

Group PresentationFINANCE AND MARKETINGROTARY ENGINEERING UK LIMITEDINTRODUCTIONRotary Renewables, a division of Rotary Engineering UK Ltd is a one stop renewable energy company , offering a professional informative service enabling its customers to make their decision about which renewable process is best. It has been successful in delivering wind energy needs of customers and is looking forward to expand its wings on to Solar PV and offer flexibility for its customers to choose from various renewable options.Gunel SuleymanovaAitor Acarregui PinedoJoshua AyabinaNiranjan BEmeka OkerekeMarketing Research SWOTPESTELMarket SituationGroup MembersMarketing AnalysisPeople initially moved from their homes into relief camp sitesFlood continues through the nightRelief campsite flooded as shown below. Causing further panic,loss of stored food and some got sick as they were wet for hours Porters Five ForcesMarket SituationRecent withdrawal of financial support available to the solar industry, particularly to large-scale solar PV installations, threaten the potential economic viability of the industry Domestic Market is in leadGROUND MOUNTED INSTALLATIONS PLAY KEY ROLE!!!RecommendationsCONCLUSIONSStrategic ImplicationsPositioningMARKETING ANALYSISTHANK YOU!`Economical Factors:

BENEFITSIt is the largest sub-sector of the UK solar PV market, both in terms of number of installations and the total capacity installed.

RECEN DATA There are more than half a million homes now have solar panels. Comparing to 2010, there were just 15,000 solar panels.

COMMERCIAL & INDUSTRIAL

BenefitsBoth of these sections have the same benefits such as lower electricity bills, protection against future electricity price rises, and a smaller carbon footprint. These sectors have the advantage of producing huge of amounts of electricity and generally being able to better match on-site generation with on-site demand. Customer SegmentationIndigenous UsersCommercial UsersPublic BuildingsCharacteristics: These are people who have limited income and are moderately literate, yet some of them are retired and moved from cities to urban areas.Profile: They live in wide area, essentially in remote area. They want to add some value to their property, but they are hesitant as it effects their visual landscape. These can be landlords or farmers. Principle Choice Factors: Energy security, prefer greater warranty periods, ease of maintenanceCharacteristics: Their level of environmental awareness is relatively high. They have no knowledge about solar power and their advantages in adopting. But their motive is to make profit with faster paybacks.Profile: These are the people who are involved in small or large businesses like retail market, supply chains and any private sector. They have got sufficient funds but their investment is limited. They have limited resources depending upon their size. How ever they play key role in local market.Principle Choice Factors: They need installation process to be simple and with minimal disruption.Characteristics: They have a demand or target to achieve or reduce carbon emissions as set by DECC. Their expenditure is subsidized by government.Profile: These type of consumers are located in rural areas. They receive their funds in the form of grant by the government. Principle Choice Factors: Guaranteed returns as promised. Reduce carbon footprint.CompetitorsCompetitive RivalryThreat of new entrantsThreat of substitutionPower of SuppliersPower of BuyersFinancial AnalysisRecommendations John ParkerPaul Johnston

•Rated Solar Installer initiative: Customers can rate their experience of solar PV installations. This empower the customers to make good choices. • The FiT is reduced by 10% for installation on multiple sites based on the economies of scales.The discount factor for NPV analysis is considered as 3.5% as stated in Government's Green Book. (HM & Treasury)Break Even Point for all the three options is approximately a year to recover all the indirect costs invested on project for 50KW system.

The cost of installation of 50KW ground mounted solar panel costs around 90,000 GBP according to The Eco Experts UK. So the most likely return on investment and number of units sold is still cheaper than the price competitors offer it for.UK Government proposals to cut large-scale solar out of the Renewables Obligation could disrupt the industry’s path towards cheaper solar. This could have substantial and long lasting negative impacts on the industry and its potential in the UKThe cost of solar is falling which is a good news for consumers, who will see their energy costs drop.This diversification of energy sources at a local level is pertinent at a time when geopolitical developments underline the risks associated with the extent of the UK’s dependence on imported fossil fuels, and the future of solar PV will be justified by DECC's target of 20GW installed capacity of solar Power by 2030.The untapped potential of the commercial-scale sector – thus far untouched by FIT digressions and still eligible for the attractive Renewable Obligations Certificate (ROC) could adopt a leading role in the U.K. solar landscape in 2015, but experts are unsure just how strong this market can become.Budget and emphasize marketing among untapped markets (eg: Retail businessesBid for tenders in national and European marketsTry to reduce selling price by lowering costs where possible (eg:overheads) in order to compete with competitors.Track all the aspects of selling to customers as well as prospects.The Return on Investment becomes more viable if "Rotary" concentrates on Domestic Sector which falls under 0-4.5KW band.Ground and Roof mounted solar power systems can be separated because the criteria and pricing differ for each.It is important to note that whether the funding is private equity-based or public, these factors hold equal importance.The Government aims to install 1GW solar PV generating capacity on the Government estate through a major programme led by DECC and Cabinet Office. As part of this, the Government will lead an initiative specifically targeted at England and Wales’ 24,000 schools.(UK Solar Strategy 2015 Part 2)